Question
Rs. 3,000 is deposited in a savings account at a simple
interest rate of 30% per annum for 4 years. The total money is then reinvested in stocks offering compound interest at 40% per annum for 2 years. What is the final amount from the stock investment?Solution
ATQ,
Amount received from the bank = (3000 × 0.3 × 4) + 3000 = Rs. 6,600
Amount received from the stocks = 6600(1 + 40/100)² = Rs. 12,936
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